OpenAI is planting its flag in Australia, confirming plans to open its first local office in Sydney this year as the maker of ChatGPT cements its position in one of its fastest-growing markets.

The San Francisco-based software company, which boasts more than 700 million weekly active users globally, has quietly established an Australian entity and begun hiring locally. While details of office location and staffing are under wraps, OpenAI says the move is the “first step” in building a lasting presence Down Under.

New figures show Australians are among the most enthusiastic adopters of OpenAI’s tools. Local weekly active ChatGPT user numbers jumped 2.5 times over the past year, the company says, and Australia ranks in the top 10 markets for both developers and paying subscribers.

“Australia’s government, businesses and world-class developer ecosystem are already shaping the future of AI,” OpenAI chief operating officer Brad Lightcap said. “We’re excited to expand our presence and build a local team to work closely with partners, customers and the millions of Australians who use ChatGPT daily.”

The Sydney office will act as a hub for OpenAI’s engagement with developers, businesses, researchers and policymakers, and is expected to host a stream of events and executive visit through the end of the year. A source closed to the company not authorised to speak publicly said that initial hiring will focus on roles supporting local companies and users, including technical roles.

The move also comes at a pivotal time for AI regulation, with US President Donald Trump this week threatening to impose new tariffs and other penalties on countries that legislate against US tech giants. This masthead recently reported that the federal government is set to dump plans for economy-wide artificial intelligence laws, instead opting for a lighter touch model that will mostly adopt existing regulations in areas including privacy and copyright.

A recent Productivity Commission report estimated that AI could contribute $116 billion to Australia’s economy over the next decade, provided the government steers clear of stifling the technology with overly strict regulations.

OpenAI recently hired former Tech Council of Australia boss Kate Pounder to lead its local push as Australian policy liaison.

Despite being relatively new, ChatGPT has quickly become embedded in the Australian economy, though its arrival has also caused a sense of unease among some of the local workforce. This year OpenAI inked a multi-year partnership with Commonwealth Bank, where AI is being rolled out to customers and staff, while local tech heavyweights Atlassian and Canva are also on board as developer partners.

Commonwealth Bank chief executive Matt Comyn welcomed the news, saying OpenAI’s arrival “adds world-class capability to the local AI landscape” and would “unlock opportunities for Australian businesses”.

The bank last month announced 45 AI-related job cuts, before later backtracking on the move, calling it an “error”.

NSW Innovation Minister Anoulack Chanthivong called OpenAI’s arrival a “transformative opportunity” that aligned with the state’s innovation blueprint.

The decision follows months of talks between OpenAI executives and Australian officials in San Francisco, including ambassador Kevin Rudd and Assistant Minister Andrew Charlton. The government hopes that OpenAI’s on-the-ground presence will bolster its broader AI Capability Plan, which aims to ensure Australia is not left behind in the global race.

For OpenAI, which is backed by Microsoft and sits at the forefront of the generative AI boom, the Sydney outpost represents both a strategic foothold in the Asia-Pacific and a response to booming local demand.

While the company has yet to spell out headcount targets or office size, it promised more detail this year.

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